OCR Text |
Show Report of the Regional Director power in the production of goods and services. The indirect benefits are estimated at $19U,600. The estimates were based on rates of 6.9 mills per kilowatthour for firm energy, U«9 mills for secondary energy, and 2.5 mills for project pumping energy. The present value of the average annual power bene-fit of $550,200, based on a period of 100 years with compound interest at 2\ percent annually, would bo $2O,lli5jOOO. 5>3# Additional benefits would accrue from flood control, sediment control, fish and wildlife conservation, and recreation. Benefits from fish and wildlife conservation and recreation were based on estimates by the Fish and Wildlife Service and the National Park Service. A summary of the average annual benefits and their present value is given in the following tabulation! Average Annual Present Valuo Benefit of Benefit Agriculture •l,73l*i 960 $63,52i-,OOO Power 550,200 20,1^5,000 Flood Control 9,000 330,000 Sediment Control 26,600 97U,OOC Fish & Wildlife Conser- vation 26,000 952,000 Recreation li+,500 53.1*000 Totals $2,361,260 $86,U56,ooo Benefit-Cost Ratio 5U« The cost of constructing the Dixie Project, as previously discussed, is estimated at $27,0l|.l,OOO, based on October ±9kl prices, and $28,296,000 at July 19U9 prices. For the purpose of the benefit-cost analysis it was assumed that the expenditures for constructing the features of the Hurricane and Santa Clara Divisions would be spread equally through the construction periods preceding Project Year 19 which arc taken as 5 years and 2 years, respectively. The annual expenditures were then con-verted to present value at the beginning of Froject Year 1, with compound interest at 2-jj percent, and the average annual equivalent cost determined. Siirdlarly the present value and average annual equivalent of the annual operation, maintenance and replacement costs, and of the salvage value of the project at the end of the 100-year analysis period were determined. The sum of the annual equivalent construction cost and the annual operation cost, less the annual equivalent of the salvage value at the end of the period of analysis is tho amount to be weighed against the average |
Source |
Original book: Utah exhibits [of the] State of Arizona, complainant, v. State of California, Palo Verde Irrigation District, Imperial Irrigation District, Coachella Valley County Water District, the Metropolitan Water District of Southern California, City of Los Angeles, City of San Diego, and County of San Diego, defendants, United States of America and State of Nevada, interveners, State of New Mexico and State of Utah, parties |